France has said that the dispute with India over import duty on wines and spirits would be sorted out through discussions without approaching the WTO.

The European Union (EU) had recently threatened to drag India to the WTO if taxes on wines and spirits imported from Europe are not slashed.

Foreign Trade Minister of France Anne Marie Idrac says, “We are sure that arrangements can be found between Indian producers and Europeans, especially French producers.”

In 2007 India had slashed the additional customs duty it charged on imported spirits, up to 150% of value of imports in some case, but simultaneously hiked the basic customs duties to 150% from 100%.

Prior to this, the European Commission had dragged India to WTO in 2007 seeking redress of its grievances which included what it called denial of ‘national treatment’ to liquor imported from Europe.

More: Economic Times